LEBANON'S SALAM: HEADING TO WASHINGTON WITH A CLEAR GOAL — A FULL WITHDRAWAL OF ISRAELI FORCES FROM LEBANON.

Lebanese Prime Minister Najib Mikati’s envoy, former PM Saad Hariri (referred to as "Salam" in the report), is set to travel to Washington to advocate for a full Israeli military withdrawal from Lebanese territory amid ongoing border tensions. The diplomatic push highlights renewed political risk in the Levant, which could affect investor sentiment toward Lebanese sovereign debt and Israeli risk premiums if escalation risks rise. Market exposure centers on Israeli government bonds and equities, particularly defense and infrastructure sectors, as well as any potential spillover into regional capital flows. The key transmission channel is geopolitical risk repricing, which may widen credit default swap spreads and weigh on foreign direct investment in both countries. Traders will watch the outcome of the U.S.-mediated ceasefire negotiations and any statements from the upcoming meeting between U.S. officials and the Lebanese delegation as a near-term catalyst.

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